Beer war shows power of big donors

March 21, 2014

For a great example of how big-time political donors secure a return on investment in Tallahassee, look no further than the effort by craft beer makers to sell their brew in half-gallon-sized "growlers."

Craft beer is a booming business in Florida, having grown from six breweries in 2007 to 50 last year, with another 28 getting ready to open this year, according to a report by Brendan Farrington of the Associated Press.

At present, state law allows craft breweries to sell their beer in gallon jugs and quart-sized growlers, but not half-gallon-sized growlers, the most-popular size in 47 other states.

Nit-picky laws like this are exactly what business owners mean when they talk about too much government regulation.

So the AP asked Florida Senate President Don Gaetz, supposedly a free-market guy, why state lawmakers won't allow small breweries to dispense beer in half-gallon growlers.

To his credit, Gaetz was candid in his reply. He said a friend and major GOP donor, who happens to be a Budweiser distributor, prefers legislation that craft brewers say would slow their growth and cause some to close.

"I'm with the beer distributors in my district," Gaetz told the AP. "That's a very important issue because one of my very best friends is an Anheuser-Busch distributor and he never talks to me about his business. It's always about what are we going to do for disabled children, what are we going to do for the arts, what are we going to do for economic development. But this time he's talking about growlers."

It's worth noting that Anheuser-Busch InBev distributor Lewis Bear, along with his company and family, have contributed $260,000 to the Republican Party of Florida and $31,000 to Gov. Rick Scott's campaign committee, the AP reports. Political committees supported by Anheuser-Busch distributors also have donated about $1 million over the years, to both Republicans and Democrats.

The regulatory struggle facing craft breweries is a good example of how the business of politics works. For while state leaders give lip service to getting government out of the way, they often use their positions to pick winners and losers in the marketplace.

Whether in the awarding of contracts, the granting of incentives or the imposition of regulations on a friend's competitors, people in power often reward donors who helped get them elected. It's why big donors give to political campaigns. They expect a return on investment.

In this case, big distributors want beer sold in the sizes they sell, and are using their influence to keep popular craft-beer sizes out.

There is talk of legislation that would legalize half-gallon growlers, but the proposal would hardly spell good news for start-ups. Rather, it would open the window to a host of other new restrictions.

According to the AP, the proposed legislation would ban the sale of gallon-sized beer containers. Brewers wouldn't be able to sell their products in bottles, cans and kegs at their breweries. Neither could they sell another brewer's beer. And new standards for labeling, sanitizing and sealing would be imposed that the Florida Brewers Guild calls excessive.

"For the craft breweries to get something positive, they have to give up something. It's ludicrous," said Josh Aubuchon, a lobbyist for the brewers guild.

Ludicrous, yes, but it's how politics works.

The next time you hear lawmakers talk about over-regulation, ask them what they've done for the brewers of craft beers.